Assume that you are considering to buy a Toyota Corolla automoble. You need to select one of the Diesel and Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it wll be sold. What is the annual average distance that makes Diesel and Gasollne optlon equivalent (I-10%). Diesel Gasoline Price (TL) 94000 78000 Insurance (TL/year) Fuel cost (Lt/TL) Fuel consumption (Lt/km) Salvage value after 5 years (TL) 700 700 4.44 5.16 0.042 0.058 70000 58000 Select one: a. 17000 O b. 7000 c. 27000 O d. 37000 e. 12000 f. 19992

Assume that you are considering to buy a Toyota Corolla automoble. You need to select one of the Diesel and Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it wll be sold. What is the annual average distance that makes Diesel and Gasollne optlon equivalent (I-10%). Diesel Gasoline Price (TL) 94000 78000 Insurance (TL/year) Fuel cost (Lt/TL) Fuel consumption (Lt/km) Salvage value after 5 years (TL) 700 700 4.44 5.16 0.042 0.058 70000 58000 Select one: a. 17000 O b. 7000 c. 27000 O d. 37000 e. 12000 f. 19992

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume that you are considering to buy a Toyota Corolla automoble. You need to select one of the Diesel and
Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it wll
be sold. What is the annual average distance that makes Diesel and Gasollne option equivalent (i=10%).
Diesel
Gasoline
Price (TL)
Insurance (TL/year)
Fuel cost (Lt/TL)
94000
78000
700
700
4.44
5.16
Fuel consumption (Lt/km)
Salvage value after 5 years (TL)
0.042
0.058
70000
58000
Select one:
a. 17000
O b. 7000
O c. 27000
O d. 37000
e. 12000
f. 19992

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